Morning journal and courier., 1887-09-07
THE K. s. WHEELER SUSPENSION.

Held by New Haven Bamks-NOst O1
 1t Considered Good-An Assignment
 Made by the Firm Yesterday-Talk
 About Town in Financial Circles.
 As was naturally to be expected, owing to interests involved and the magnitude of the business done by the concern, the topic of the day about town yesterday was the sus- pension of E. s. Wheeler & Co. The inter est was not confined to financial circles, as the hundreds of workmen employed at the wire mill and at the rolling mill and their families were deeply concerned. A rumor prevailed at the Rolling Mill company among the workmen that that concern was to shut down, but was stated in the COURIER of yesterday the rolling mill is in no wise affected by the suspension, it being an entirely separate financial concern. Nei- ther has work been suspended st the wire mill, where 400 hands are employed; work was proceeding there yesterday as if nothing had happened, and Mr. Wheeler said that work might continue there right along-but of that he was unable to speak with any cer- tainty owing to the change in the situation of affairs and as it is likely that the Wire Mill company's affairs may be soon in the
 hands of a receiver. There were many wild stories floating about town yesterday regard
 ing the failure, but the reliable facts are given below. The news of the suspension
 of this hitherto staunch and influential firm
 created 8 genuine sensation and is felt in other
 places, the firm having, as stated yesterday,
 places of business in New York, Boston, Bal
 timore, Philadelphia, Chicago and Liver.
 pool. The New Haven house has been the
 center, to which the outside offices have act
 ed as feeders. On everybody's lips yester- day was the question, "Will the firm be able to resumeT That is question which it remains for the future to determine. It is evident upon enquiry made at the banks of
 the city yesterday that MT. Wheeler had very
 little accommodation paper out in this city,
 at least, and that the Wheeler paper held by
 our banks consists of notes of manufacturing
 concerns and merchants using the goods
 which were supplied by the Wheeler con- cerns; these notes having been discounted by our local banks upon MT. Wheeler's endorse ment of them.
 Said banking man yesterday who had looked the field over little: We calculate that there is from $500, 900 to $350, ,000 of the Wheeler business paper held by New Haven banks, all of which is supposed to be good. We mean by Wheeler paper notes given the Wheeler concern in payment for goods fur nished and discounted by MT. Wheeler upon his endorsement. The money thus realized was deposited and checked against. All this business paper is considered good; so New Haven banks will probably lose nothing by the failure in any case. That is how it looks at present. Of course the suspension may have tail to it by embarrassing other firms and houses, but generally speaking, the pa
 per held by the New Haven banks is consid-
 cred good Of course we cannot tell the ex- tent of the failure or how badly it will pan out.
 Said a leading financier of this city: It is
 to be sincerely hoped that the house may
 stand the strain upon it and emerge from it
 unharmed. The reason of the suspension is
 clear The house did an immense business
 on a comparatively small capital. It de-
 pended vitally on it's receiving flow of mon
 ey back into it's treasury coequal to what il
 was called upon to pay out. With an easy
 money market and ordinary prosperity the
 firm was not easily caught in a trap, espec
 ially with so wary, shrewd and enterDrisine
 business man as MT. Wheeler at the helm
 But the money market was tight. There were, we will imagine, some heavy payments to be made for importations received. The equivalent did not come from the customary channels to enable the firm to meet theil demands. The exigency became pressing Some heavy payments that were expected did not arrive, and hence the firm ran shor of money and was obliged to call a halt No one knows to what amount the firm has accommodation paper out 1T other cities, nor what it's liabilities are fol importations or other debts. But one thing we are sure of: the firm has no accommoda ton paper out in this city worth mentioning The New Haven banks hold only business
 paper with the firms endorsement upon it. And this paper, as rule, will probably turn
 out to be good. Anyway, the matter is to be deplored, and we shall all rejoice to hear tha the firm is on it's feet again.
 Ex-Mayor H. M. Welch, president of the First National bank, said yesterday after noon with indignation: Please correct th' statement in an afternoon paper which reads
 1.-The amount which the First National bank car $17O,0Oo. These figures may be relied upon as az | proximatey correct
 That is, said Mr. Welch, far wide of tn trutb. So far from the banks holding $170, 900 of it it holds hardly one-fourth tha amount. Another error adoat, said MT Weleh, is that the rolling mill is involved cia1 concern, and, as MT. Wheeler stated il the morning press, will in no wise be af fected by the suspension.
 ! MT, Wheeler was interviewed at his office early last evening. He was found calm, col | lected, ready and alert, and in answer to en | quiries that there were no new features il the matter to give the public beyond tn | events of the morning including the doing | at the Probate court, at which an assign ment was made and MT. s. A. Galpin secre | tary of the Wire company, as trustee Int | goods of the Wire company have exclusivel, been handled by E. s. Wheeler & Co.,, anc the company has done very large business
 ranking among the largest wire producing ! concerns in the United States. MT. GalpiI | filed the notice of assignment at 10o'clock | Judge Robertson named 9 o'clock on tn
 morning of Tuesday, September 13, for tn | hearing on the appointment of trustee. MT
 Wheeler said yesterday, the assignment mad ' covers all the property of E. s. Wheeler 6 Go. and all my individual property, even t. ! the furniture and bedding in my house. Tn house is for sale and will be vacated at al \ early date. It is impossible at present t | state the amount of our liabilities because S ! large a share of them is contingent upon oth | CT people fulfilling their own promises t pay.
 Mr. Wheeler being enquired of who wer | his partners, said he had none. The impres | sion that he had one was erroneous. In 1S6 he came into the business. which had for | merly been conducted by Charles Atwater Sons and later by Charles Atwater. He be came partner of MT. Atwater and later tn firm became Atwater, Wheeler & Go A wire mill was established, but that enter prise failed and January 1, 1874, MT. Wheel | CT succeeded alone to the business. The frn was E. s. Wheeler & Co.,, but at that tim | the silent partner was none other than MI | Wheeler himself. He conducted the busi ness alone. In about three years, when w | J. Isaacson went into partnership with him | the name remained the same. MT. Isaacsol | had charge of the Liverpool office of tn ! concern, which had charge of the buying o l all the materials in which the firm dealt an | shipping them to this country. Three year | ago MT. Isaacson withdrew to take charge o | the business of 8 syndicate of Englishme | doing business in the west and south.
 For some time past MT. Wheeler has ha ! no partner and the published impression tha MT. Allen, son of ex-Chief of Police Allen had an interest in the firm is erroneous. Said another gentleman: The only Ne1 Haven banks not having any of E. s. Wheel
 CT & Co.'s paper are the Second National an
 the New Haven National bank. The fir
 had been doing very large business on
 small capital: in fact, too large. In eonse quence, they had to float good many notes
 If the customers were good the business ps per, a large amount of which was held b | New Haven banks, would be paid but knew nothing of who these customers were If the customers were good and there wer no other causes for the suspension, then tn affair could be easily arranged, but he wa